Oil Companies Cost Control System

Cost is comprehensive reflection of enterprise management level. Under the new situation of the integration of international economy, it is very important to strengthen cost control for our oil enterprises because cost level of ours is much higher that that of foreign oil enterprises.The following four aspects are the key contents in the paper.1. Law of cost formation of oil enterprise and its influencing factors. The cost of oil and natural gas should be the cost of all-aspect, including all the expenditures in exploration and development and production. The formation process of their cost has its special characteristics, such as strong objectivity, high invest amount, many risks, high fixed cost, special law of changing like a curve of basin.2. Analysis on present situation of cost control for oil enterprise. In the recent years, many new progresses have been made in cost control. For examples: objective management of cost gets more and more improvements; the mode of cost control begins to turn pure financial control into control in the whole process of production and operation; many new methods are adopted in cost control; considerate cost problem in strategy and construct cost control system and form a series of new ideas of cost control gradually. But the task of cost control is still a long-term and tough problem based on analysis of present situation of cost control for oil enterprise.3. Mode of cost control system of oil enterprise. The principles of setting up cost control system are the followings: renew idea of cost management and build up thought of cost control of all aspects; master law of cost control and realize the change from absolute control to relative control; attach importance to cost and benefit and arrange cost factors rationally; insist on the unity of technology and economics and take designing and manufacturing as the key link of cost control.4. The establishment and operation of cost control system. To do the job of cost control, the following nine tasks must be emphasized: try to accomplish the change of idea and thought; adjust enterprise structure and perfect operational mechanism according to systematic innovation; reform organizational structure and assign managerial function rationally; Establish cost control system of all levels in all-round way; consolidate construction of cost information management system; strengthen systematic construction and basic work; implement widely technical innovation to improve level of producing technology; carry out the cost control mode of all-aspect and all-member and whole-process according to the requirements of cost control; strengthen innovation in financial management and implement effective supervision.